CPSIA – Final CPSIA Amendment (HR 2715) Moves to President’s Desk for Signature

Here is the final form of the CPSIA Amendment  (HR 2715)  that should become law sometime this week. I want to quote from another blog (thank you, Steven Hansen ) on this amendment’s path to the President’s desk: ” This bill and the path it has taken is an example of why people are very frustrated with Congress and getting legislation passed in general. These ‘legislative’ fixes have been getting passed around in backrooms for months and when they finally did come to a ‘vote’ the ‘fix’ was already in and they sailed thru in minutes or seconds on votes that were purely formalities. There was really no warning that this would be passed when it did or in this fashion. If you did not get what you wanted in here well that’s too bad because you are not likely to see any further relief for some time. Apparently Congress is going to be in recess until after Labor day as they had to work so hard to pass the debt ceiling bill. ” Mr. Hansen is completely correct.  We know that even Republican members found out about this amendment when it was docketed for a House floor vote.  Mark-up, schmark-up.  The Senate also made the decision (if that is even possible, since the Senate is an inanimate organization without a mind) to shift to HR 2715 without debate, and passed it with a voice vote.  These decisions were literally made in minutes behind closed doors and Members of Congress had no time to read (and perhaps no interest to read) the “noncontroversial” bill.  After three years of intense bickering, a small group of individuals made the decision for all of us that this bill is good enough to “fix” the CPSIA.  There won’t be another “fix” to this law again, perhaps EVER.  You know the bill sucks if Henry Waxman is clucking about it .  In fact, most of the text of the bill was his handiwork almost entirely (functional purpose, testing “relief” (Eshoo), database (Markey), small batch “relief”). And what did we get for all our good government dollars?  I have previously given my quick assessment of this law and have no interest in repeating the exercise at this point.  I would like, however, to highlight low lights of the bill: Winners :   ATVs, Bicycles, Resale Goods, Books, Libraries Losers :  See above list, and if you’re not on it . . . you. Technical Fixes of Past Congressional Screw-ups :  100 ppm lead standard is prospective now.  And WHY wasn’t Congress able to do this for 300 ppm or 600 ppm?  Good question.  The five CPSC Commissioners called for this particular change back in January 2010.  What’s the hurry now??? Changes to testing requirement to “representative” rather than “random” samples.  And we just hired our third statistician, too! Restricts the phthalates ban to accessible plasticized components.  i guess Congress isn’t worried about kids with serpent tongues any longer. Makes FUTURE crib standards prospective.  And who said the $32 million in recently discarded good fixed-sided crib inventory died in vain?! Shame, Shame, Shame : Small batch manufacturers, the most micro of businesses (under $1 million in total turnover) must register prior to utilizing any of the nifty cost-saving testing innovations now being cooked up by the very open-minded CPSC.  This is the CPSC’s version of the sex offender registry.  Is there ANY basis for singling these people out for special attention?  Why doesn’t Mattel have to register, too?  Oh, come on, you know we must have different rules for Mattel!  They need their own firewalled labs and so on for their efficiency.  [Here's a good example of their efficiency.]  It’s only fair, the real safety worry is the crafters . . . . The only good news is that none of the small batch manufacturers will ever have to suffer this indignity. The clever gnomes of Congress have figured out how to appear to give something to those heart-rending  little nobodies without doing squat.  How do they do that?  The only “relief” that the CPSC may implement must meet this standard:  “Any such alternative requirements shall provide for reasonable methods to assure compliance  with any applicable consumer product safety rule, ban, standard, or regulation.” [Emphasis added]  This CPSIA term has already been interpreted by this Commission multiple times.  The word “assure” ensures that no relief will ever be given since nothing can “assure” compliance other than prophylaxis.  Notably, the Commission has purportedly looked for this “out” for three years and came up with nada .  And Bob Adler has been “agonizing” over it for that entire time.  [I feel AWFUL for him, he suffers for each of us.] How will another year or two of agonizing produce a different result? Suckers are welcome to wait longingly for this promised “relief” but they will be disappointed again and again.  Protest is futile. Disgusting, Repellent Hypocrisy : Consider the amazing gimme provided to bicycle manufacturers: ” (B) METAL COMPONENT PARTS OF BICYCLES.—The third party testing requirements established under subsection (a) shall not apply to metal component parts of bicycles with respect to compliance with the lead content limits in place pursuant to section 101(b)(6) of the [CPSIA]. ” They don’t have to test their metal components at all.  AT ALL, EVER.  Bicycle manufacturers are different than you and me. Let me be clear – I think testing metal components on bikes is a stupid and pointless waste of time and money.  The bike industry testified in the CPSC 100 ppm hearing that when they tested a single part in ten places, they got ten different results.  Whoa!  They proved they had an unsolvable problem and apparently Congress listened.  How heartwarming! I gave similar testimony and submitted similar data about our products at the same hearing in the same panel sitting at the same table.  Congress must have gone deaf by that time.  Oddly, the CPSC staff included this data and my testimony in their 100 ppm report.  So perhaps Congress isn’t just deaf, they may be blind, too.  Or perhaps they just don’t bother with the details. Inquiring minds want to know about this particular term benefiting bicycle manufacturers: 1.   The AAP testified that there is a real risk that kids might lick their bicycles .  Problem?  Apparently not, but the testimony was taken morbidly seriously at the time.  I wonder why Congress wants to protect bike lickers now. 2.   Perhaps you recall that the CPSC rejected the request of Learning Curve to exempt its brass bushings on toy car wheels.  This decision was a “major victory” for safety because, get ready for it, there was lead in the brass bushings although Bob Adler noted there was no danger even to a child at the “tipping point” in lead exposure.  [Adler voted to reject LC's petition nevertheless. He "had" to, the law left him no choice.]  Later the Consumers Union warned against playing brass instruments in a band because of the dreaded lead in brass.   [ Degchi (Curry cookware) is one of many traditional Indian cooking utensils and pots made of brass.  Where are all the Indian victims from generations of eating off brass?]  The CPSC also held the line against bikes, pens and ATVs over the purported lead content of their metal components because the Dems asserted that there is no safe level of lead.  Is Congress signalling that metal components are uniquely safe in bicycles?  How did Congress figure this out?  Is there something in the Congressional record on this point? The term about testing metal bicycle components first appeared in this bill when it went to the House floor on suspension.  Bills on suspension cannot be amended.  Hmmm. 3.   I recall Rachel Weintraub intoning during testimony at the CPSC and in Congress that consumers expect their products to be tested before sale.  [Former Commissioner David Pittle told the same tale at a CPSC hearing.]  Bicycles won’t be tested before sale now.  How will consumers be able to sleep peacefully?  How will they know which items are not tested (ATVs, books, bikes, resale goods of all types) and which are tested?  Won’t they have the same uncertainty again?  I can feel the fabric of our society tearing a little bit . . . . 4.   Bicycle manufacturers have indicated that tests of metal components vary depending on where you test the component.  There is unpredictable variability in their test results because . . . metal components are not precisely homogeneous.  Metals are used in components in many children’s products, not just bikes.  It follows that all metal components pose the same issue.  It also follows that metals pose an equal risk of lead poisoning regardless of the product they are used in.  So why must we test our grommets and staples when bikes can tool around untested? 5.   Is there a reason why OTHER components on a bicycle (presumably made of plastic and vinyl) must be tested?  Is there a known health hazard there that bike companies must protect against?  Will those tests achieve anything for anyone?  And why must every other product category still subject to the CPSIA test every component, whether metal or plastic? 6.   The CPSC has held that it is “technologically feasible” to make every component of every children’s product compliant to the 100 ppm standard.  There were no exceptions to their conclusion.  Why did Congress in its infinite wisdom decide that bicycles alone could be forgiven the need to meet this standard and alone to not have to test its metal components?  [The other problem child under this provision, ATVs and motocross, was written out ENTIRELY.]  Why weren’t bikes made to comply with the astute judgment of the CPSC and shift over to new materials to meet the “toughest lead standard in the world”?  After all, that only costs money, and Bob Adler assured us that the cost would be minor and worth it.  Can’t be too safe and, of course, we all know that safety delayed is safety denied.  Isn’t this action of our all-knowing Congress denying safety? As I have noted, this law picks winners and losers.  Applying reason and rationality to this arbitrary allocation of spoils is a pathetic waste of time at this point.  Congress has decided what’s best for all of us, and with the Tenenbaum gang in charge at the CPSC, you shouldn’t spend much time hoping things are going to change in the future. Henry Waxman and Rachel Weintraub won.

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CPSIA – Final CPSIA Amendment (HR 2715) Moves to President’s Desk for Signature

CPSIA – As Predicted, the Senate Adopted House Bipartisan Bill Amending CPSIA

After three years of warring, Congress has finally passed an amendment to the CPSIA.  HR 2715 was approved by the Senate this evening by voice vote. This is expected to be the last legislative relief (thusfar the only legislative) relief from the CPSIA. 

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CPSIA – As Predicted, the Senate Adopted House Bipartisan Bill Amending CPSIA

CPSIA – CPSC Enforcement Officer Speaks

In a July 29th blogpost , CPSC Commissioner Anne Northup reproduced a letter she received from a CPSC Field Agent.  Like so much data rejected by the Validation Bias Democrats on the Commission, I am sure this letter will be ignored.  Why not decide for yourself if it’s relevant? “I just had an opportunity to read your July 20 statement concerning lead ppm . I just wanted to say thank you for saying what some many of us in the field are feeling everyday while having to carry out compliance efforts in face to face scenarios with business owners. We don’t have the sanctuary of a phone, a computer or geography to shield us form [sic] the reality of their world. Since passage and implementation of CPSIA many of us, [geographic location removed], are facing more and more resistive and hostile receptions as we carry out our day to day activities with businesses. This seems to be specifically for the reasons noted in your statement and not just within the limited scope of lead. For the most part these are people with children of their own trying to make a living for their families that have no desire to put out an unsafe product. We are becoming the face of the reason they believe that opportunity is becoming more difficult and/or failing for them. It is so disheartening to go out on an assignment and spend an hour listening to a business owner berate us about how ridiculous some of our regulations and/or procedures are and not have one argument to present in return because they are right . It is reassuring to know there is still some hope at the Commission level that some day we can return to a state of reasonable regulation and focus on safety, not philosophy and bureaucracy.”  [Emphasis added] I wish I shared the Field Agent’s optimism.  Hey, buddy, those days are looooooong gone.

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CPSIA – CPSC Enforcement Officer Speaks

CPSIA – Tenenbaum and Co. Thumb Their Noses at Obama’s Executive Order

The sparks were certainly flying at the July 20th Commission meeting last week.  With access finally granted by the CPSC today to the video footage, I was able to see for myself all the excitement at that storied meeting.  I was amply rewarded with a display of regulatory arrogance you rarely see on tape – Inez Tenenbaum and Bob Adler standing tall and thumbing their noses at a binding Executive Order.  I guess the CPSC is now above ALL law, other than laws endorsed by Henry Waxman. The tension in the room at this meeting was palpable, and the usual shenanigans took place, like Ami Gadhia’s claims that CPSC Staff found that manufacturers intentionally add lead to children’s products (47:31).  While I would normally take the scummy consumer group reps to task for their misstatements (lies?) and innuendo, in fact at this hearing, a much more important issue was “debated”.  [Bickered over is more like it.]  Namely, whether the CPSC has to follow President Obama’s Executive Order  to preform cost-benefit analyses on regulations under the CPSIA.  I have previously addressed this issue in blogposts on July 12 , July 14 ,  July 20  and July 21 . After the usual pointless sparring over the ability of the CPSC to do the right thing (don’t worry, Bob Adler “agonized” over these difficult decisions . . . and then voted to screw industry), the meeting devolved into a series of often incoherent and inconsistent defensive rebuffs by Dems supporting of their political conclusion that they can blow off the Executive Order to the extent that it threatens in any way their work implementing the CPSIA. Of course, the idea of the Executive Order was to ensure that those rules are economically justified. Blah blah blah.  The view of the Dem Commissioners is that evidence of the extreme economic impact of these rules is not relevant to the CPSIA rulemaking process, notwithstanding Mr. Obama’s little note. Chairman Tenenbaum laid down the law at 1:15 in the tape: “I’d like to comment on the Executive Order [which says] ‘Nothing in this order shall be construed to impair or otherwise affect authority granted by law to a department or agency, or the head thereof . . . . This order shall be implemented consistent with applicable law and subject to the availability of appropriations.’  Congress was very clear. They wanted the lead limits at 600 then 300 then 100.   We have looked at this from all angles.  And I can tell you, consistent with the law, we have implemented the CPSIA. . . . Congress was very aware that we could not write regulations unless we did a Section 9 cost-benefit analysis in some of the statutes we implement.  And they on purpose did not require us to do cost-benefit analysis because they realized the urgency of getting lead out of children’s products. . . . And that my legal understanding. . . . And so to have this fiction be a part of this public hearing, that we are required to do cost-benefit analysis under the CPSIA under the Executive Order cannot go unanswered .”   [Emphasis added] Take that, Obama!  Your EO is fictional!  Tenenbaum seems to be saying that because Congress permitted expedited rulemaking under the CPSIA, all regulations under CPSIA are shielded from any cost-benefit analysis mandated by the President.  She pins this on the standards established under the CPSIA.  Interestingly, she seems to overlook that the 100 ppm standard was subject to a rulemaking process, and the Obama order specifically addresses rulemakings.  She also glosses over so many other rulemakings which are remote from the standards.  Details, details. . . . The Obama order instructs the CPSC to follow Executive Order 13563 to the extent “permitted” by law.  The CPSIA does not preclude cost-benefit analysis, it only allowed the agency to skip it.  The only direct reference to cost-benefit in the CPSIA is in Section 233 where cost-benefit analysis is specifically written out of  the Poison Prevention Packaging Act of 1970.  Cost-benefit analysis is NOT specifically written out of the CPSA in the CPSIA anywhere.  The Dem Commissioners didn’t address this point during the July 20th meeting. EO 13563  in relevant part says:  “. . . to the extent permitted by law, each agency must, among other things: (1) propose or adopt a regulation only upon a reasoned determination that its benefits justify its costs (recognizing that some benefits and costs are difficult to quantify); (2) tailor its regulations to impose the least burden on society, consistent with obtaining regulatory objectives, taking into account, among other things, and to the extent practicable, the costs of cumulative regulations; (3) select, in choosing among alternative regulatory approaches, those approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages, distributive impacts; and equity). . . . “  The President’s new EO applies this verbiage to the CPSC.  Tenenbaum just blows it off entirely.  The President must be below Henry Waxman.  Ms. T gets pretty snippy at points.  ” There are people on this Commission that want to contort and use this Executive Order.  I have spoken to attorneys at the White House; I know I stand on firm legal ground.  And so please don’t leave this meeting thinking that we expected to do cost-benefit analysis or this Executive Order mandates that we do that.  It does not !” Tenenbaum’s argument – I am judge, I am jury, don’t question me.  Anne Northup notes that the stalemate in Congress is no indication that the law requires such harsh and inflexible positions by the agency: ” It’s also clear that Members of Congress . . . are universally talking about, even the authors of the bill, changes that ought to be made [to the CPSIA].  The reason that Congress has not acted is that [there is disagreement over how broadly to amend the law.]  They have not told us that they think we should proceed in the most aggressive fashion and in the most punishing rulemakings and to take advantage of every opportunity we have to regulate more toys rather than less, more tests rather than less, and so forth. . . . All an Executive Order does is ask us to . . . take seriously whether or not we can find alternative ways of achieving the meaning of the law without the disruption in the economy .” Continuing the debate (argument), Bob Adler had much to say as usual.  As we know, Bob Adler is already on record volunteering to block cost-benefit analysis with his dead body.  [See " Is that a promise, Bob? "]  At the July 20th meeting, he proffered the reason why cost-benefit analysis is inapplicable here: ” My colleague asked whether there is anything in the statute that specifically exempts us from having to, from being able to do cost-benefit, and I think in terms of the precise parsing of the statute, that’s correct.  But let’s be clear:  it effectively in all major respects precludes us from doing that. When they’ve given us 42 deadlines to achieve in just a very short period of time, when they’ve specifically exempted us from having to do these incredibly time-consuming and costly Section 9 procedures, i think there’s a very clear message from Congress there.  Congress in effect was saying ‘We’ve done the cost-benefit analysis.  Now we want you to implement the law .” So, the reason not to obey the President – Congress couldn’t have meant us to do a cost-benefit analysis because otherwise they wouldn’t have given us so much darned work to do.  In addition, by reducing our burden with looser Section 9 procedures to expedite the implementation process, Adler says Congress meant to say that they had already “completed” a cost-benefit analysis.  Mr. Adler does not attempt to prove his point, his assertion being enough apparently.  I am always impressed by the self-justifications of regulators who claim to be able to read the “mind” of an inanimate body like Congress.  In law school, they taught us to follow rules of legislative interpretation.  That’s so Old School!  Nowadays you only have to attribute a “thought” to Congress to “prove” legislative intent. Of course, just a few days ago , Bob asserted something rather different: ” It says “to the extent permitted by law” we should do cost-benefit analysis. And I just wanted to say over my dead body would I agree to do the kind of cost-benefit analysis that is contained in Section 9 of the [CPSA]. That is paralysis by analysis .”  [Emphasis added] At that time, Adler seemed to believe that the words “to the extent permitted by law” require the agency to do a cost-benefit analysis only when it is convenient to perform such complex analyses.  Hmmm.  Does anyone think that legal analysis is just a bit “loose”? Ah, but Bob wasn’t done by any means.  He carried on (and on and on) at the July 20th meeting to add yet another argument, namely that cost-benefit assessments are impossible as a practical matter.  No explanation as to why this was relevant, as Adler already said Congress instructed the agency to not to do such analyses and the Executive Order is inapplicable.  Details, details. . . . ” One of the things that I this is intriguing . . . is where they say ’Now when you’re doing a cost-benefit analysis, let’s address all the deficiencies we have identified with cost-benefit analyses in the past, namely you can always calculate the costs, especially the short term high costs but measuring benefits is just extraordinarily difficult.’ How do you measure the life of a little baby? Because usually what they [conclude is that] there is no benefit . . . that you can quantify from saving a baby’s life.” So, apparently, it might be okay to do cost-benefit analysis (?) but it wouldn’t work.  Congress must not have meant us to waste our time . . . .   He later challenged anyone in the room to tell him what the “quantifiable benefits” of two lost IQ points are.  Too bad the EPA wasn’t there. They do that regularly.  Here is a quote from AOL Energy referring to this kind of economic analysis:  “The economic value of the IQ points and the benefits of reducing particulate pollution was estimated using ‘long-standing, peer-reviewed’ practices on the effect of regulations, [EPA] officials said.”  Again, details, details . . . . Adler noted that this IQ point information would be crucial to an argument on how many angels could sit on the head of a pin.  Thus, Mr. Adler sneers at the value and legitimacy of a cost-benefit analysis involving children.  As our apparent judge, jury and overseer, one must surmise that he thinks it’s his right to make this judgment, notwithstanding an Executive Order. Oddly, Big Bob does concede that the picture is not quite so clear.  Hmmm. ” I’m not arguing that because we’ve got a lot of work that Congress therefore said don’t do cost-benefit analysis.   [ Editor's Note :  Bob, in fact, that IS what you argued.]   That isn’t all they said.  They said ‘You know what we want you to do, we want you to do a Regulatory Flexibility Act analysis which is looking at the cost side of the ledger which is easier to calculate.  In particular, to look at the cost side of the ledger insofar as affects small businesses because those are the folks who are the canaries in the mine that we look to .”  Adler goes on to retract this assertion, and return to his claim that Congress DIDN’T want the CPSC to do a RFA analysis and instead just wanted the agency to implement the law.  His argument here seems to be that Congress was interested in some sort of economic analysis but only a limited one. Adler then launches into his final jab at blowing off the Order: ” I guess we do have a dispute about whether we have imposed this in an ultra-aggressive way or in an extremely thoughtful way.  I think we have taken the approach in an extremely thoughtful way.  But sometimes you have to do a cost-benefit of whether to do a cost-benefit and I don’t think that analysis gets us very far .” So Adler wraps up with his “over my dead body” argument – he just doesn’t want to do it. Take that, Obama! Nancy Nord grimly assessed the sad spectacle we witnessed: ” This is an important issue.  And cost-benefit analysis could have been done with respect to our regulations under CPSIA but wasn’t.  Whether that’s a good idea or a bad idea, we can continue to debate.  But Congress did not say not to do it – Majority did.  And I think that’s unfortunate and I think our rules have suffered because of  that. ” I will spare you the late sniping between Tenenbaum and Nord, but if you like catty repartee, it’s at 1:24. With three Dem Commissioners in charge at the CPSC, you can forget about relief from the EO.  Nice try, Mr. President, but you’ve met your match. Tenenbaum, Adler and Moore are above the law and are on a Waxman mission that transcends our laws and the Constitution.  There’s not much left to hope for with this crew in charge.  Maybe the CPSC will be on the national debt chopping block.  Don’t hold your breath. . . .

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CPSIA – Tenenbaum and Co. Thumb Their Noses at Obama’s Executive Order

CPSIA – Not to State the Obvious, but the Debt Ceiling Fiasco Imperils ECADA

Among the many reasons for despondency at this time of national gridlock is that the Washington national debt standoff likely signifies the demise of ECADA (the pending CPSIA Amendment).  A week from this Friday is the last work day before Congress’ all-important summer recess.  [As you know, Congress needs its R&R.]  The CPSIA will remain unamended unless a bill moves through Congress by then.  You don’t need to be a seasoned Washington vet to see that Congress ground to a halt while the national debt food fight is going on.  With the likely pressure of world market volatility, U.S. credit rating downgrades and other homegrown massive financial calamities, and you have a recipe for Congress’ attention being somewhere besides the CPSIA.  With the President and his minions playing the market manipulation card (Daley and Geithner were dispatched to the Sunday talk shows to spread their gloomy prediction of market cracks on Monday), the ability of Congress to focus on its actual work is just about nil now.  Mine certainly is, too. It will be the ultimate irony if the debate over the size of our government is what wins day for an engorged CPSC focusing on fake health crises as directed by the CPSIA.  Victory to Rachel Weintraub, Henry Waxman and Bob Adler all because our national leaders can’t decide how much to spend beyond our national means?  Three years of fighting may end up on the rocks, simply because of bad timing. If ECADA does not become law before August 14, the 100 ppm lead standard will be retroactive, the THIRD such scr*wing imposed on us by the soulless bureaucrats at the CPSC since August 2008.  Oh yes, I know, they have no choice.  Woe is me, they feel so badly about it, but what can you do??? Tell that to our employees, our suppliers, our dealers and the millions of families, schools and teachers who depend on our company and its products.  Hey Dems, why not finish the job with a big tax increase, too?!  Stay tuned.

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CPSIA – Not to State the Obvious, but the Debt Ceiling Fiasco Imperils ECADA

CPSIA – Rachel Weintraub’s Distortions Justify Dem Refusal to Amend the CPSIA

Democrat tool Rachel Weintraub is never at a loss for words on the topic of CPSIA and true to form, she has today published more misstatements, distortions and innuendo to bolster Dem efforts to block amendment of the CPSIA.  In the space below, I rebut Ms. Weintraub’s “view of the world”.  It is worth noting that a much more erudite explanation of the pending CPSIA Amendment (ECADA) was published side-by-side with Weintraub’s smear campaign, namely ” Fix bill would make products safer, not less so ” by Eric Stone.  For those who don’t know Eric, his credentials include more than 33 years at the CPSC, including as Legal Director in the Office of Compliance and as Acting Director of the Recalls and Compliance Division.  He faced the real questions of safety at the agency and made the judgments subject to the scrutiny of the public, Congress and the legal system.  As Eric Stone notes, ” In crafting its new safety bill, Congress proved that moral outrage and good intentions do not necessarily result in good law .”   Amen. My responses to Ms. Weintraub are in blue and red . Don’t set safety clock backwards for kids products By Rachel Weintraub Florida Sun-Sentinel July 24, 2011 The House Energy and Commerce Committee will soon vote on HR 1939 , the “Enhancing CPSC Authority and Discretion Act of 2011,” or ECADA, a bill that guts the Consumer Product Safety Improvement Act, a vital law that keeps unsafe toys and other dangerous products off the shelves. RW – It is a typical ploy of the Lefties opposing amendment of the CPSIA to frame everything in terms of toys.  Toys are but one category affected by this awful law, but by using it as the CPSIA poster child, Weintraub puts you where she wants you – afraid of ECADA’s potential effects on innocents by “evil toymakers”.  Aside from the fact that “evil toymakers” are no more or less prevalent in our society than any other category of “evil” something-or-anothers, Weintraub’s characterization greatly distorts what CPSIA really is.  CPSIA applies to ANYTHING that is intended to be sold to children.  The list is well-known but, as a reminder, it includes t-shirts and shoes, carpets, pens, ATVs, bikes, books, science kits, DVDs and CDs, furniture, brass musical instruments, rhinestones and so on.   Focusing on toys is just to get you going. Congress passed CPSIA by an overwhelming, bipartisan vote in 2008, and President Bush signed the bill into law that year. After a year of careful deliberations, CPSIA’s passage followed a record number of recalls of children’s products that injured and killed children. The measure gave new life to the U.S. Consumer Product Safety Commission, a weakened federal oversight agency that had failed in its meager efforts to protect the public’s safety. The law represents a giant step forward in protecting America’s children. RW – Another defensive ploy of the CPSIA defenders is the “infallibility of Congress” argument, namely that everyone voted for it so why is anyone against it now.  This argument only makes sense if you don’t think about it too much.  For one thing, the CPSIA was passed in anger.  Have you ever said or done anything in anger that you later regretted?  That point aside, it is important to consider that this law was devised by a Dem-controlled Congress dominated by the strong-willed Left Winger Nancy Pelosi of San Francisco.  Pelosi takes no prisoners and tolerates no dissent among her Dem followers.  The law was dictated by Dems to the Republicans, as insiders acknowledge, and was passed just ahead of the Obama wave in the Presidential election cycle. The votes of Republicans for such an extreme law cannot properly be deemed “voluntary” in any conventional sense. Everyone knew this law was a great chess move by the Dems, forcing Republicans to go along, and even President Bush got into the act by agreeing to sign to protect his party.  Weintraub’s distorted rewrite of history is a good illustration of the rule that history is written by the victors.  Consider the source . . . . CPSIA currently requires that children’s products be tested for safety before they arrive on store shelves — something that many consumers already assumed was happening. RW – Another oft-repeated consumer group assertion, never proven.  It has always struck me that this argument is just transference. I have no doubt that folks like Weintraub always wanted this, and simply assume that everyone shares their “common sense” desires and fears.  It sets limits on lead in children’s products, sets infant product and toy safety standards, and bans certain phthalates, which are chemicals linked to a variety of health risks. The law also creates a much-needed public database where consumers can easily report and research product safety problems. We have already seen the successful results of CPSIA. Most recently, on June 28, 2011, new crib standards went into effect, which means that cribs sold in stores must meet the most protective safety standards in the world. This will give parents and caregivers the long-overdue peace of mind that when they purchase a new crib, it will be a truly safe place for their baby. Some small toy manufacturers have raised concerns about the costs of testing their products to the new safety standards. These concerns, and narrowly tailored ways to reduce the costs for very small children’s product manufacturers, are useful to discuss. RW – The nauseating cynicism of this remark cannot go unaddressed.  Ms. Weintraub argued for two years that the agency “needed time” to implement the law and to work out the kinks.  At that time, she and the other Dems argued that there was “nothing wrong” with the CPSIA that the CPSC couldn’t fix in its implementation and that consideration of legislative fixes was not merited until that process was complete.  Three years later we are still subject to this on-going implementation . . . that is, those of us who haven’t gone belly up.  Weintraub expressed little interest in “discussing” these issues way back then.  Later, Ms. Weintraub tried to justify Henry Waxman’s lame-o effort at a cursory amendment of the CPSIA that offers negligible relief.  Here is an excerpt from her House testimony dated April 28, 2010 (15 months ago) on this topic: ” Special provisions for small businesses includes allowing certain businesses to be exempt from third party testing when the Commission finds that reasonable testing methods assure compliance with relevant consumer product safety standards . We believe, however, that the term “small batch manufacturer” is defined too broadly . We commend the fact that the language does not allow small batch manufacturers to obtain exceptions for durable infant or toddler products or lead paint, cribs, pacifiers, small parts, children’s metal jewelry, baby bouncers, walkers and jumpers. Because of the fatal nature of the defects in many of these types of products, as demonstrated by recalls in the past, all manufacturers should be required to meet the same safety and testing requirements. We could not accept a broadening of either the definition of small batch manufacturer or a limitation of those products not covered by this provision .”  [Emphasis added]  The CPSC never did identify any such “reasonable testing methods” even though the “hunt” has gone on for three years now.  Even Ms. Weintraub must blush when she tells you that such issues deserve “discussion”. Unfortunately, instead of fixing concerns of the truly small manufacturers, HR 1939 goes too far and rolls back important consumer protections created by CPSIA in a number of ways. HR 1939 reduces safety testing for children’s products by undermining independent safety testing requirements for most children’s products. This would place us in the same dangerous situation we were in 2007 and 2008, when millions of beloved toys were recalled because of excessive lead paint, strong magnets that when swallowed in multiples could rip apart a child’s intestines and chemicals that turned into the date-rape drug when swallowed. RW – The issue in 2007 and 2008 was NOT that the law did not protect consumers.  In fact, if anything, the issue was that the agency did not (adequately) protect consumers. The bad behavior that prompted the CPSIA was clearly illegal, as the agency could act to enforce if it so chose.  After all, they issued hundreds of recalls under prior law.  Please pause and give that a little thought.  Weintraub’s argument is pure urban legend, but helpful urban legend for the tall tale she is trying to sell. It is also worth noting that Gib Mullan, the then head of Compliance at the CPSC admitted during the second session question-and-answer session at the CPSC Tracking Labels hearing on May 12, 2009 that the agency had never seen the strong magnet hazard evidenced by Magnetix previously and at first mistook it as a “small parts” issue.  No law can prevent the unknown and the not previously experienced from happening.  That is a safety fantasy.   In addition, the “date-rape drug” incident involved an unapproved change in materials by a factory which no testing regime would have caught (CPSIA or not). The safety issue was completely unprecedented and the product was immediately recalled without argument by a very safety conscious toymaker.  Only in Weintraub’s self-serving world is this incident useful . . . to terrorize.  Under most circumstances, it should be held up as a great public-private partnership and a sign that there are good people in the industry. Under this bill, virtually all toys would no longer have to be tested for safety before they come into our homes — these products would be safety-tested only if and when CPSC undertook a laborious and complicated series of steps, including a cost-benefit analysis that emphasizes testing costs over health and safety benefits. RW – Weintraub here spurns the President’s Executive Order which MANDATES cost-benefit analysis by the CPSC.  This arch position conforms to the surprising world view of Bob “Over My Dead Body” Adler and Inez Tenenbaum and certainly suits their Dem agenda.  It is, unfortunately, an affront to the President’s order.  It is also economic nonsense .  The OPPOSITE is correct, at least according to the Nobel Prize committee which awarded the 1991 Economics Prize to Ronald Coase for his work proving the need for regulatory cost-benefit analysis.  Mr. Coase proved that ignoring cost-benefit analysis exposes all of us to the risk of being impoverished by government regulation.  Thanks, Rachel, for the great idea! It is unclear if CPSC would ever have the resources, time or information to complete what this bill demands of them, and it is therefore unclear if toys would ever be subject to independent testing. Independent testing not only prevents unnecessary injuries to children, but it can also prevent costly recalls for the manufacturer — a benefit to consumers as well as manufacturers. RW – Here Rachel spins an even bigger tall tale, that preserving mandatory testing is in manufacturers’ best interests.  Apparently she is the only one who knows this.  The people who actually work for companies affected by this rule have been howling for three years-plus.  Here Rachel sets us all straight – the problem is we’re wrong and she’s right.  Oh, now I see it!  Her reasoning relies on the urban legend that in the absence of mandated testing, testing will cease.  That’s nonsense and is not supported by data.  We have been testing since I got to Learning Resources, more than 20 years ago.  So, if mandated testing is necessary to force testing, why were we testing way back then?  Simple – we wanted to know we were complying with the standards.  Standards drive testing, and enforcement can make testing prevalent, even universal.  Mandated testing just raises costs, unfortunately.   I have previously addressed this issue in a blogpost. HR 1939 increases the amount of lead that would be permitted in children’s products. CPSIA currently requires that all parts of children’s products comply with a single, unambiguous standard for lead content. The proposed legislation would replace that clarity with a variety of standards that will be different depending on when the product was manufactured, the age of the child for whom the product is designed, whether it contains small parts and other factors. As a result, parents and other consumers will no longer have the confidence that all parts of all children’s products are safe for their children. Lead is a known toxin where even small amounts can be harmful by decreasing a child’s IQ. There is no reason why there shouldn’t be a single, strong standard that simply keeps lead out of children’s products. RW – No reason, huh?  Space does not permit me to reduce this absurd statement to rubble.  I have been writing about the many common sense reasons to modify standards for three years now.  ECADA as a matter of fact does very little to change standards except to codify some sensible concessions already made by the CPSC in stays applying to metals.  If you are terrorized by the prospect of bicycle licking or the horrors of playing brass instruments in the school band , ECADA’s changes will no doubt keep you up at night. Your fears are nothing that our proposed National Xanax Fund can’t address.  The idea that different standards for different products aimed at different ages of children are somehow “defective” flies in the face not only of common sense but also the regulatory tradition at the CPSC.  Before whackjobs began to dominate the safety discussion, and before the agency had its brain removed by Congress, the regulators were able to see the sense of crafting different rules for two year olds, six year olds and twelve year olds. And nobody thought the same rules should apply to rhinestones, pens, ATVs and books.  If you are an experienced parent, you might know something about the need to modify rules for different ages of children. I have tried to regulate teenagers with the same rules as toddlers and received some “pushback”.  And when I try to keep toddlers safe by applying sensible rules designed for teenagers, that doesn’t seem to work either.  HR 1939 undermines the effectiveness of the new crib safety standard. The bill would carve out a large exception to the bipartisan standard for cribs in child-care facilities. Under the bill, some child-care facilities would not have to replace existing fixed-side cribs even if the cribs violate the most basic crib safety standards — slats too far apart, non-compliant corner posts and failing mattress supports. Parents should be assured that the cribs their babies sleep in meet the strongest crib standards — both at home and in child-care facilities. The new, robust crib standards just went into effect for new cribs consumers can buy in stores and will apply to hotels, motels and child-care facilities in 18 months. Carving out child-care center cribs from this important protection moves the safety bar backwards. RW – I have tried to avoid biting on the bait of the consumer group attacks on ECADA for the innocuous and sensible crib rule changes.  It is in Ms. Weintraub’s interest to make you feel that there is some sort of evil cabal dominating the Republican Party which somehow induces them to play roulette with your babies’ lives.  Anyhow, it’s all a fiction but a helpful fiction to Ms. Weintraub’s purpose, namely to subvert efforts to amend the CPSIA.  Here is the “deadly” language that Ms. Weintraub protests so intensely: “(B) SPECIAL RULE FOR FIXED-SIDE CRIBS SUBJECT TO CERTAIN STATE OR LOCAL LAW REQUIREMENTS- Paragraph (1) shall not apply to a fixed-side crib that has not been recalled and that is offered or provided for use in a licensed child care facility (other than a family child care home) that is subject to the following requirements under the law of a State or a political subdivision of a State:  (i) The facility may not allow a child to remain in a crib for any significant amount of time while the child is awake, (ii) The facility may not place in a crib a child over the age of 16 months, (iii) An adult must be present whenever a child is in a crib.” Ms. Weintraub fails to deliver evidence that this exceedingly modest change could harm children based on actual injury data.  She just wants you to push the panic button.  ECADA only permits certain legacy FIXED SIDE cribs to remain in service.  I thought fixed side cribs were the “answer”.  Not if their inclusion in ECADA might help get it passed, apparently. HR 1939 allows the use of dangerous phthalates , which are hormone-disrupting chemicals that have been added to child-care articles like teething rings. This proposed bill would undermine CPSIA’s landmark protections against phthalates by allowing large, undefined exemptions to both the prohibition and interim bans on phthalates in toys and child-care articles. RW – Rachel again ventures into Whopperville to scare you about phthalates.  Let’s start by deciding how “dangerous” phthalates are.  Ms. Weintraub reasons that if (the infallible) Congress banned them, the chemicals are ergo dangerous. The law, in fact, only bans three chemicals permanently and has directed the agency to investigate another three.  On two previous occasions the agency has done just that . . . and concluded that phthalates don’t present a risk to children.  Ms. Weintraub omits to let you know that this provision was added to CPSIA at the last moment, without hearings or investigation, by California Senator Diane Feinstein of San Francisco and mentor to Nancy Pelosi.  Aha.  The science on phthalates is hardly an open-and-shut case – just watch 60 Minutes for perspective.  Ultimately, the greatest disservice to truth performed by Ms. Weintraub here is to distort what measly relief is being offered.  ECADA only allows us to stop testing components that cannot be touched or licked by kids.  That’s it.  The actual words:  ” ACCESSIBLE COMPONENT PARTS- Effective on the date of enactment of this Act, subsections (a) and (b)(1) and any rule promulgated under subsection (b)(3) shall apply to any accessible, plasticized component part of a children’s toy or child care article.” HR 1939 undermines the new CSPC product safety database . This new database allows public access to consumer complaints about product safety problems while giving the industry ample opportunity to view and comment upon such safety-related reports before they are posted. The database, available at http://www.saferproducts.gov, just went live in March. It will help consumers research products, help CPSC identify emerging hazard trends and help prevent unnecessary deaths and injuries. HR 1939 would place onerous hurdles on those seeking to report a safety problem, thereby discouraging the sharing of potentially lifesaving information with other consumers, companies and the government. RW – Oy vey.  There has been so much written on this subject that I can’t bear to write it again.  Ms. Weintraub intentionally ignores any point inconsistent with her political agenda.  I will leave it at that, but feel free to pour over my prior writings on the database (tagged on the side of the blog) for further details. Consumers demanded and received strong product safety reform from Congress in 2008. Undermining these important product safety improvements puts all of our children at risk. HR 1939 will not protect our children from product safety hazards. Rather, HR 1939 rolls the safety clock backwards and creates huge and unnecessary loopholes in our nation’s safety net. RW – One last point, to quote Eric Stone :  “ECADA gives CPSC broader subpoena and investigational authority. Not surprisingly, opponents do not mention such provisions since they do not fit the ‘Republican-industry conspiracy’ narrative.”  I love the “Republican-industry conspiracy narrative” part.  You can see how that might work well for Rachel. Rachel Weintraub is director of product safety and senior counsel at the Consumer Federation of America in Washington, D.C.

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CPSIA – Rachel Weintraub’s Distortions Justify Dem Refusal to Amend the CPSIA

CPSIA – NAM Ad In The Hill Supporting Passage of ECADA

From The Hill Newspaper, dated July 21, 2011: The time left to Congress to act on amending the CPSIA before the 100 ppm lead standard boom crushes more businesses and jobs is only 24 days .  [ Html version of the ad ]  This includes the time to get through the Senate, then conference, then to the President for signature.  Not a lot of time . . . and par for the course for this government, I suppose.  Will they act in time?  I certainly hope so but with Henry Waxman doing his evil best to prevent any progress on this issue, I don’t have high expectations.  Let’s hope some Democrats still have a conscience.

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CPSIA – NAM Ad In The Hill Supporting Passage of ECADA

CPSIA – Trip Down Memory Lane (WSJ Editorials on CPSIA)

There have been nine editorials by The Wall Street Journal against the CPSIA.  I thought you might enjoy seeing them all in one place.  Below you will find links to all nine editorials, with a short highlight from each one. The more things change, the more they stay the same . . . . First Editorial (January 14, 2009):  Pelosi’s Toy Story “The damage comes from new rules governing lead in children’s products. After last year’s scare over contaminated toys made in China, Congress leapt in to require all products aimed at children under 12 years old to be certified as safe and virtually lead-free by independent testing. The burden may be manageable for big manufacturers and retailers that can absorb the costs of discarded inventory and afford to hire more lawyers. Less likely to survive are hundreds of small businesses and craftspeople getting hit with new costs in a down economy.” Second Editorial (February 6, 2009) Toys for Congress New lead rules hit next Tuesday. Whammo. “CPSC Chairman Nancy Nord has noted that the law has created ‘chaos and confusion,’ and as if to prove her point, yesterday New York federal Judge Paul G. Gardephe ruled that the law’s limits on a plasticizer known as “phthalates” should apply to existing inventory just as lead standards do — overturning a CPSC ruling to the contrary. That makes it even clearer that Congress needs to fix its own mess.  Trouble is, House Speaker Nancy Pelosi is heavily invested in the fiasco. On passing the misguided law in August, she proclaimed that ‘with this legislation . . . we will be removing these products from the shelves.’ Taking store owners and toy entrepreneurs with her.” Third Editorial (March 30, 2009) Pelosi’s Library Quarantine The CPSC is left cleaning up the House Speaker’s messy child-safety law. “Democrats in Congress have leapt to criticize acting CPSC Chairman Nancy Nord, in hopes President Obama will replace her. But the real culprit here isn’t the CPSC, which is overwhelmed with requests from manufacturers trying to make sense of the chaos that Congress created. House Energy and Commerce Chairman Henry Waxman has dismissed efforts to improve the law, claiming the real problem is that “misinformation has spread” about the impact on businesses.” Fourth Editorial (April 3, 2009)   Toys R Congress Ruining the kids motorcycle business   “The multibillion-dollar children’s motorcycle and all-terrain vehicle industry has been clobbered. Kids motorcross racing has boomed in recent years in rural and Western states. And the regulators at the Consumer Product Safety Commission (CPSC) have decided that virtually all of these youth vehicles violate the new standards because of lead in the brakes, tire valves and gears. They’ve ordered motorcycle dealers to stop selling them, putting hundreds of dealers and the entire motorcross industry in a depression. With one stroke of the regulatory pen, an estimated $100 million of inventory can’t be sold, and the industry loss may reach $1 billion.”   Fifth Editorial (August 11, 2009)   Consumer Product Destruction Congress’s lead in toys panic is set to ruin more businesses.   “Jewelry makers now join the legions of other businesses on the hook for millions of dollars in lost sales, inventory or testing costs despite products that pose little to no risk of lead poisoning to children. In the spring, thrift-store operators like Goodwill and the Salvation Army predicted that without regulatory relief they would have to destroy more than $100 million of inventory. Toy stores expected some $600 million in playthings that would have to be trashed and another $2 billion in losses across the industry. Motorcycle and ATV makers predicted total losses and business disruptions around $1 billion. Children’s clothing stores have suffered huge losses, with Gymboree losing 40% of its market value overnight after reporting losses related to the House’s lead-paint panic.”   Sixth Editorial (November 7, 2009)   Congress’s Brass Knuckles Another casualty of the lead toy ‘safety’ law.   “CPSC Commissioner Anne Northrop noted that the decision not to grant a brass exemption shows that ‘the Commission does not believe there is any [flexibility] written into the law.’ Without action from Congress to address the chaos it created, Ms. Northrop said, ‘More small businesses will be forced to shut down.’ CPSC Chairman Inez Tenenbaum has insisted that changing the law would be ‘premature.’ Yet it has already been more than a year of bedlam for manufacturers and retailers negotiating these rules.”   Seventh Editorial (April 6, 2010)   Waxman’s Lead Poison A fix of a bad law that is no fix at all. “Mr. Waxman is insisting that any product applying for an exemption would still be subject to a three-pronged test to determine whether stripping lead from the product is ‘practicable or technologically feasible,’ whether a product might end up in a child’s mouth and whether its exemption would affect public safety. In a response, CPSC Commissioner Nancy Nord explained that since all three tests have to be met for a product to qualify, ‘the exception is as empty as the exception for no absorption of any lead. Such a provision does not really help anyone.’ . . . If Mr. Waxman wants to enhance Congress’s original creation, he should start by letting product safety regulators consider whether products are safe.” Eighth Editorial   (March 11, 2011) Get the Lead Out, Sir Nutty test standards give Obama a real chance to help business. “The law also requires the CPSC to propose the parameters of a third-party lead testing regime, but the issue is so mired in complexity that the commission has yet to set those standards. Under the proposed version of this so-called ’15 Month Rule,’ Learning Resources Chairman Rick Woldenberg has estimated that supplying multiple testing samples on each of his company’s toys and products will cost his company some $15 million per year. . . . At a hearing in the House Energy and Commerce Committee in February, California Democrat Henry Waxman defended the law as ‘necessary to protect kids and families across the country.’ We wonder how he figures that, since the incidence of lead poisoning from toys made by domestic manufacturers is nil.” Ninth Editorial (July 20, 2011) Toying With Deregulation Another agency ignores Mr. Obama’s executive order. “Here’s a question for White House regulatory czar Cass Sunstein: Do Presidential executive orders mean anything? Only last week President Obama asked independent agencies to examine existing rules and get rid of the duds, but nobody is listening. . . . Mr. Obama’s recent executive order is voluntary, but the President told agency heads that getting rid of red tape was an opportunity to ‘forge a 21st-century regulatory system that makes our economy stronger and more competitive.’ Perhaps Mr. Sunstein will tell toy makers it’s the thought that counts.”

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CPSIA – Trip Down Memory Lane (WSJ Editorials on CPSIA)

CPSIA – WSJ’s NINTH EDITORIAL Opposing the CPSIA

REVIEW & OUTLOOK JULY 20, 2011 Toying With Deregulation Another agency ignores Mr. Obama’s executive order. Here’s a question for White House regulatory czar Cass Sunstein: Do Presidential executive orders mean anything? Only last week President Obama asked independent agencies to examine existing rules and get rid of the duds, but nobody is listening. Within days of the executive order, the Consumer Product Safety Commission voted 3-2 that it is “technologically feasible” to impose a lower limit on lead content in children’s products, reducing the level to 100 parts per million from 300 parts per million. The new limit, which will go into effect August 14, will mean one more round of hair-pulling for small business owners who will have to change their manufacturing processes and junk existing products that don’t meet the new standard. The three votes in favor came from Mr. Obama’s chairwoman Inez Tenenbaum and two other Democratic commissioners. The Consumer Product Safety Improvement Act passed in 2008 in a frenzy of concern over lead content in toys from China, and it has since tormented anyone who makes or sells bicycles, books, children’s jewelry and so much more. Its strictures have imposed costs for testing, recalls and other inconveniences without any reasonable correlation to the risks to children. “No sweetheart, don’t eat that bicycle!” According to the CPSC, the plan to require that products be 99.99% lead free is reasonable because manufacturers would still be able to find materials and because some products already comply. While the additional safety gain will be negligible, the change will do damage in other ways, causing companies to avoid recycled metal and plastic, which may contain higher amounts of lead. It will also raise costs for metal parts, potentially driving some businesses to substitute plastic for metal, or stop producing children’s products. In the bicycle industry, a quarter of manufacturers have stopped making kids bikes. Instead of fixing its manifest flaws, Congressional Democrats who wrote the law have shrugged off small business complaints and opposed any changes. Energy and Commerce Chairman Fred Upton and Commerce, Manufacturing and Trade Subcommittee Chair Mary Bono Mack introduced reforms earlier this year that would revise the law and give the CPSC greater authority to make regulation decisions based on actual risk. The bill is waiting for a mark-up at full committee but any reprieve would likely come too late for businesses facing the mid-August deadline. Mr. Obama’s recent executive order is voluntary, but the President told agency heads that getting rid of red tape was an opportunity to “forge a 21st-century regulatory system that makes our economy stronger and more competitive.” Perhaps Mr. Sunstein will tell toy makers it’s the thought that counts.

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CPSIA – WSJ’s NINTH EDITORIAL Opposing the CPSIA

CPSIA – 100 ppm Vote – What They Knew and When They Knew it

What did they know and when did they know it?  The vote on 100 ppm is going on this AM, so it’s too late to do anything about the projected 3-2 vote implementing this pointless and self-destructive provision of the CPSIA.  From my perspective, having investing time and money in trying to stop this train wreck, it has been a long time since there was anything we could do about it.  It’s not our country. I have written about this provision endlessly in this space. I thought I would just put up a couple bits of info previously disclosed here for perspective on the vote. The 100 ppm lead limit vote is a vote of conscience.   The Commission knows what they are about to unleash.  I told them in no uncertain terms during my February 16th testimony : From the CPSC Staff analysis of 100 ppm : “[While] staff does not have data on potential lead exposure from products that have lead content less than 300 ppm, but more than 100 ppm, staff expects that the overall contribution of such products to lead exposure in children is minimal.” “Staff has found no intentional uses of lead in materials at concentrations at or near any of the three statutory lead limits (i.e., 100 ppm, 300 ppm, or 600 ppm). . . . Without the intentional use of lead in materials or the use of certain recycled materials, the lead content of most materials is substantially below the mandated limits.” Notably, NO consumer group has responded to my call or Congress’ call for the identities of previous victims of the “hazard” that the CPSC purports to regulate.  With no victims identified EVER ANYWHERE , the claims of benefits from this provision are spurious at best. What is the EPA’s opinion on lead in dirt ?   400 ppm in play yards and 1200 ppm elsewhere is just fine.  No word yet whether G-d, the manufacturer of dirt, has to provide comprehensive testing for compliance. What is the economic impact of this change?   The CPSC did not do a cost-benefit analysis as Obama’s Executive Order requires now, but only provided “Economic Information” (cost only, no benefit analysis): “[Bringing] products that do not currently comply with the 100 ppm limit into conformance is generally expected to result in increased manufacturing costs. . . . [Manufacturers] of children’s bicycles experienced a 20 to 25 percent increase in the costs of metallic components when the lead content limits were reduced from 600 ppm to 300 ppm. . . . Learning Resources, Inc., a manufacturer of educational materials and learning toys, said it expects a 10 to 20 percent increase in the cost of producing finished goods when the lead content limit is reduced to 100 ppm. . . . testing costs may rise . . . . Because there are limits to the reduction in profits that firms are willing and able to accept, some manufacturers are likely to reduce their selection of children’s products or exit the children’s market altogether. Some manufacturers may even go out of business. . . .” “The higher costs associated with metal components will probably result in some efforts to substitute lower cost materials. Plastics, for example, might be substituted for metal parts in some products. Some of these types of substitutions may affect the utility of the children’s products. . . . Additionally, and as noted in comments from the Handmade Toy Alliance and the Bicycle Product Suppliers Association, it is likely that the costs will have relatively greater consequences for smaller manufacturers and artisans, who have less bargaining power with components suppliers, fewer technical resources, smaller production runs to spread testing costs over, and smaller product lines.. . . ,There appear to be few readily available options for mitigating the costs associated with the 100 ppm content limit. . . .” Mr. Obama’s Executive Order requires the agency to make actual cost-benefit assessments of this change in law now.   I made the same call on February 16, 2011 during my testimony on 100 ppm: You can find numerous other clips from the 100 ppm hearing in posts in this space in late February or on YouTube.  You can also read my comment letter on 100 ppm.

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CPSIA – 100 ppm Vote – What They Knew and When They Knew it

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